First time buyers confused but happy with mortgages
15 November 2003
A survey carried out by the Mortgage Code Compliance Board has shown that around 94 per cent of first time buyers admitted they had less than a good understanding of mortgages, with the majority admitting they 'did not know much at all'.
The study of over 600 mortgage borrowers also revealed that some customers are confused about the level of service received, with the possibility that some customers have been given advice on product choice within an information-only sale, a practice contrary to Mortgage Code guidelines.
However, the survey did show that as many as 95 per cent of respondents felt that the service received throughout the mortgage process was of a good standard.
Luke March, chief executive of MCCB said commented on the survey: 'As the mortgage market in the UK is worth around £250 billion per annum and more than two million mortgages are taken out every year, it is important that there is complete clarity when mortgage advice has been provided, especially to meet the needs of first time buyers.'
The research was carried out one year ahead of the takeover by the Financial Services Authority of the regulation of mortgages with the findings likely to affect how the FSA handles the regulation of the mortgage market.